Carnival Corporation & plc operates as the largest global cruise company, offering a portfolio of world-renowned cruise lines including AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises, Princess Cruises, and Seabourn.

In the second quarter of 2025, Carnival delivered a strong performance with net income of $565 million, or $0.42 diluted EPS, an increase of nearly $475 million year-over-year. This outperformance exceeded March guidance by $185 million. Adjusted net income was reported at $470 million, representing a more than threefold increase compared to 2024.

Revenue reached a record $6.3 billion for the quarter, up by almost $550 million versus the prior year, and net yields increased by 6.4% compared to 2024, surpassing March guidance by 200 basis points. Operating income for the quarter was $934 million, the highest ever for a second quarter, while adjusted EBITDA was approximately $1.5 billion, up 26% year-over-year.

The company reported customer deposits at an all-time high of $8.5 billion. Operating margins improved by over 500 basis points, with adjusted EBITDA margins increasing by over 300 basis points compared to the previous year. Cruise costs excluding fuel per available lower berth day (ALBD) increased by 3.5% year-over-year, which was below guidance expectations due to favorable timing of expenses across quarters.

For the third quarter of 2025, Carnival expects net yields (in constant currency) to rise approximately 3.5% compared to 2024 levels. Adjusted cruise costs excluding fuel per ALBD are expected to increase by around 7%, attributed primarily to operating expenses related to the introduction of Celebration Key, a new exclusive destination opening next month, as well as increased advertising expenses and lower capacity.

Guidance for full year 2025 has also improved, with adjusted net income projected to rise over 40% compared to 2024 and adjusted EBITDA anticipated to be approximately $6.9 billion, which is more than a 10% increase from the previous year. The adjustments reflect strong revenue performance and improved management of costs. Adjusted cruise costs excluding fuel per ALBD is now expected to rise approximately 3.6%, which is better than prior guidance.

In terms of liquidity, Carnival recently extended and upsized its revolving credit facility to $4.5 billion, enhancing its financial flexibility. The company also continues its focus on reducing its debt, having refinanced nearly $7 billion in debt at favorable rates this year, with a net debt-to-EBITDA ratio improving to 3.7 as of the end of the second quarter.

Overall, Carnival’s sustained growth is underscored by the impressive growth of its operational metrics, positioning the company well in a competitive market despite ongoing global uncertainties.